Nuveen eyes green loans in local RE strategy

Following its first close in December, Nuveen's Australian commercial real estate debt strategy, which has a focus on responsible investing, has received $300 million from the Canadian Pension Plan Investment Board (CPP Investments) on its second close.

Nuveen said the strategy's investments are aligned to its responsible investment processes and ESG factor analysis, including waste reduction and energy consumption, climate risk analysis and social aspects.

The firm will also target to structure green loans and sustainable linked loans where applicable to meet ESG targets on behalf of clients.

Nuveen head of Australia and the global client group for Southeast Asia Andrew Kleinig said the capital injection will help lead its clients to better manage responsible investments.

"We believe Nuveen's offering across real assets more broadly is well-positioned to help clients across Asia navigate volatility alongside managing their responsible investment goals," Kleinig said.

"It showcases Nuveen's pedigree in real estate investment and our ability to bring regionally tailored solutions across both equity and debt platforms."

Meanwhile, CPP Investments managing director and head of APAC Raymond Chan said Australia remains as a key market in Asia Pacific for the Canadian pension fund.

"The investment builds upon our extensive market research and insights from our successful investments in Australia," Chan said.

"Leveraging Nuveen's strong local network and capabilities, this partnership enables us to tap into attractive real estate debt investments in Australia and further augment our credit program in the region.

"These opportunities offer stability and attractive yields amid global volatility, contributing to long-term returns for the CPP Fund."

The strategy focuses on the industrial, logistics and residential, with a selective approach to retail, office and alternatives across major cities in Australia. It has more than 40% deployed via committed loan investments.